“Student loan debt is a real and growing crisis that is crushing young people and dragging down our economy,” Warren said.

“When interest rates are low, homeowners, businesses and even municipalities refinance their debt. But right now the government doesn’t offer a refinancing option to students,” she said. “ Allowing students to refinance their loans would help give them a fair shot at an affordable education.”

Last year, Congress approved the Bipartisan Student Loan Certainty Act of 2013, which set the undergraduate student loan interest rate at 3.86 percent for the current school year.

Democrats said the nonpartisan Congressional Budget Office will determine the cost of their bill, which would let student-loan borrowers refinance at the going rate.

Democrats cited federal data showing that student-loan debt grew by $31 billion from January to March, to total $1.1 trillion.